A natural monopoly is characterized by the fact that its average costs increase rather than decrease when its output expands.
Answer the following statement true (T) or false (F)
True
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The multiplier can be calculated by dividing
A. one by one minus the marginal propensity to invest. B. one by one minus the marginal propensity to save. C. the change in real GDP by the initial change in spending. D. the initial change in spending by the change in real GDP.
Critics of the U.S. definition of poverty claim it is an inaccurate measure of our poor because:
A. it is a single number that does not capture regional differences in the cost of living. B. the ratio of food to total income is different now than when the definition of poverty was defined. C. it fails to account accurately for expenditures other than food. D. All of these are true.
Discuss the criticisms leveled against the Aid to Families with Dependent Children program
Generally, the prime interest rate:
A. moves in the opposite direction as the federal funds rate. B. remains constant over long periods of time. C. is highly inflexible downward. D. moves in the same direction as the federal funds rate.